Our cable systems operate under non-exclusive franchises granted
by state and local governmental authorities for varying lengths
of time. We acquired these cable franchises through acquisitions
of cable systems and they were accounted for using the purchase
method of accounting. The value of a franchise is derived from
the economic benefits we receive from the right to solicit new
subscribers and to market new, advanced products and services.
We have concluded that our cable franchise rights have an
indefinite useful life since, among other things, there are no
legal, regulatory, contractual, competitive, economic or other
factors limiting the period over which these cable franchise
rights contribute to our revenues. Accordingly, with our
adoption of SFAS No. 142, Goodwill and Other
Intangible Assets, we no longer amortize the cable
franchise rights and goodwill. Instead, such assets are tested
annually for impairment or more frequently if impairment
indicators arise.

Based on the guidance outlined in EITF
No. 02-7,Unit of Accounting for Testing Impairment of
Indefinite-Lived Intangible Assets, we determined that
the unit of accounting for testing franchise value for
impairment resides at a cable system cluster level. Such level
reflects the financial reporting level managed and reviewed by
the corporate office (i.e., chief operating decision maker) as
well as how we allocated capital resources and utilize the
assets. Lastly, the unit reporting level reflects the level at
which the purchase method of accounting for our acquisitions was
originally recorded. We have two borrowing groups, or reporting
units, for the purpose of applying SFAS No. 142.

We follow the provisions of SFAS No. 142 to test our
goodwill and cable franchise rights for impairment. We assess
the fair values of each cable system cluster using discounted
cash flow methodology, under which the fair value of cable
franchise rights are determined in a direct manner. This
involves significant judgment, as well as certain assumptions
and estimates, including future cash flow expectations and other
future benefits, which are consistent with the expectations of
buyers and sellers of cable systems in determining fair value.
Significant impairment in value resulting in impairment charges
may result if these estimates and assumptions used in the fair
value determination change in the future. Such impairments could
potentially be material.

Goodwill impairment is determined using a two-step process. The
first step compares the fair value of a reporting unit with its
carrying amount, including goodwill. If the fair value of a
reporting unit exceeds its carrying amount, goodwill of the
reporting unit is considered not impaired and the second step is
unnecessary. If the carrying amount of a reporting unit exceeds
its fair value, the second step is performed to measure the
amount of impairment loss, if any. The second step compares the
implied fair value of the reporting units goodwill,
calculated using the residual method, with the carrying amount
of that goodwill. If the carrying amount of the goodwill exceeds
the implied fair value, the excess is recognized as an
impairment loss.

The impairment test for other intangible assets not subject to
amortization consists of a comparison of the fair value of the
intangible asset with its carrying value. If the carrying value
of the intangible asset exceeds its fair value, the excess is
recognized as an impairment loss.

We completed our most recent impairment test as of
October 1, 2007, which reflected no impairment of our
franchise rights and goodwill.

Indefinite-lived Intangibles

Our cable systems operate under non-exclusive franchises granted by state and local governmental authorities for varying lengths of time. We acquired these cable franchises through acquisitions of cable systems and they were accounted for using the purchase method of accounting. The value of a franchise is derived from the economic benefits we receive from the right to solicit new subscribers and to market new, advanced products and services. We have concluded that our cable franchise rights have an indefinite useful life since, among other things, there are no legal, regulatory, contractual, competitive, economic or other factors limiting the period over which these cable franchise rights contribute to our revenues. Accordingly, with our adoption of SFAS No. 142, Goodwill and Other Intangible Assets, we no longer amortize the cable franchise rights and goodwill. Instead, such assets are tested annually for impairment or more frequently if impairment indicators arise.

Based on the guidance outlined in EITFNo. 02-7,Unit of Accounting for Testing Impairment of Indefinite-Lived Intangible Assets, we determined that the unit of accounting for testing franchise value for impairment resides at a cable system cluster level. Such level reflects the financial reporting level managed and reviewed by the corporate office (i.e., chief operating decision maker) as well as how we allocated capital resources and utilize the assets. Lastly, the unit reporting level reflects the level at which the purchase method of accounting for our acquisitions was originally recorded. We have two borrowing groups, or reporting units, for the purpose of applying SFAS No. 142.

We follow the provisions of SFAS No. 142 to test our goodwill and cable franchise rights for impairment. We assess the fair values of each cable system cluster using discounted cash flow methodology, under which the fair value of cable franchise rights are determined in a direct manner. This involves significant judgment, as well as certain assumptions and estimates, including future cash flow expectations and other future benefits, which are consistent with the expectations of buyers and sellers of cable systems in determining fair value. Significant impairment in value resulting in impairment charges may result if these estimates and assumptions used in the fair value determination change in the future. Such impairments could potentially be material.

Goodwill impairment is determined using a two-step process. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step is performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of the reporting units goodwill, calculated using the residual method, with the carrying amount of that goodwill. If the carrying amount of the goodwill exceeds the implied fair value, the excess is recognized as an impairment loss.

The impairment test for other intangible assets not subject to amortization consists of a comparison of the fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, the excess is recognized as an impairment loss.

We completed our most recent impairment test as of October 1, 2007, which reflected no impairment of our franchise rights and goodwill.

Our cable systems operate under non-exclusive franchises granted
by state and local governmental authorities for varying lengths
of time. We acquired these cable franchises through acquisitions
of cable systems and they were accounted for using the purchase
method of accounting. We have concluded that our cable franchise
rights have an indefinite useful life since, among other things,
there are no legal, regulatory, contractual, competitive,
economic or other factors limiting the period over which these
cable franchise rights contribute to our revenues. Accordingly,
with our adoption of SFAS No. 142, Goodwill
and Other Intangible Assets, (SFAS
No. 142) we no longer amortize the cable franchise
rights and goodwill. Instead, such assets are tested annually
for impairment or more frequently if impairment indicators arise.

Based on the guidance outlined in EITF
No. 02-7,Unit of Accounting for Testing Impairment of
Indefinite-Lived Intangible Assets, we determined that
the unit of accounting for testing franchise value for
impairment resides at a cable system cluster level. Such level
reflects the financial reporting level managed and reviewed by
the corporate office (i.e., chief operating decision maker) as
well as how we allocated capital resources and utilize the
assets. Lastly, the unit reporting level reflects the level at
which the purchase method of accounting for our acquisitions was
originally recorded. We have three cable system clusters, or
reporting units, for the purpose of applying
SFAS No. 142.

We follow the provisions of SFAS No. 142 to test our
goodwill and cable franchise rights for impairment. We assess
the fair values of each cable system cluster using discounted
cash flow methodology, under which the fair value of cable
franchise rights are determined in a direct manner. This
involves certain assumptions and estimates, including future
cash flow expectations and other future benefits, which are
consistent with the expectations of buyers and sellers of cable
systems in determining fair value. Significant impairment in
value resulting in impairment charges may result if these
estimates and assumptions used in the fair value determination
change in the future. Such impairments could potentially be
material.

Goodwill impairment is determined using a two-step process. The
first step compares the fair value of a reporting unit with its
carrying amount, including goodwill. If the fair value of a
reporting unit exceeds its carrying amount, goodwill of the
reporting unit is considered not impaired and the second step is
unnecessary. If the carrying amount of a reporting unit exceeds
its fair value, the second step is performed to measure the
amount of impairment loss, if any. The second step compares the
implied fair value of the reporting units goodwill,
calculated using the residual method, with the carrying amount
of that goodwill. If the carrying amount of the goodwill exceeds
the implied fair value, the excess is recognized as an
impairment loss.

The impairment test for other intangible assets not subject to
amortization consists of a comparison of the fair value of the
intangible asset with its carrying value. If the carrying value
of the intangible asset exceeds its fair value, the excess is
recognized as an impairment loss.

We completed our most recent impairment test as of
October 1, 2006, which reflected no impairment of our
franchise rights and goodwill.